It’s back . . . Michigan Supreme Court strikes down ‘adopt-and-amend’

by John Gardnier, Bodman PLC

Breaking news! On July 31, 2024, the Michigan Supreme Court issued a decision eliminating the tip credit, raising the minimum wage, and expanding paid leave. The decision rescinds the 2018 “adopt-and-amend” action by the legislature and reinstates the 2018 citizens’ initiative for paid sick leave and minimum wage laws.

With the Michigan Supreme Court’s ruling, minimum wage will rise to $10 per hour plus the state treasurer’s inflation adjustment rate starting February 2025, including for tipped workers. In addition, employers must now adhere to one of the most comprehensive paid sick leave laws in the country, requiring major adjustments to paid time off (PTO) policies and procedures.

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